Lithium Australia farms out Greenbushes South venture

Headshot of Matt Birney


ASX-listed Lithium Australia has entered right into a three way partnership with Galan Lithium that sees the latter choose up an 80 per cent stake within the Greenbushes South lithium venture from Lithium Australia. Because of the JV deal, Lithium Australia retains a 20 per cent free carried publicity to the lithium commodity whereas additionally releasing up money to advance its downstream and battery know-how initiatives.

Greenbushes South sits solely about 3km south of WA’s world-class Greenbushes lithium open-cut mine, one of many world’s largest, highest-grade hard-rock spodumene deposits.

Below the phrases of the dynamic duo’s transaction, Perth-based Galan Lithium has agreed to concern 1.22 million of its shares to Lithium Australia and sole-fund work on the venture, which spans 353 sq. kilometres, by way of to the completion of a preliminary feasibility research.

The corporate’s divestment of a majority curiosity within the Greenbushes South venture to Galan is in keeping with our ongoing technique to advance proprietary, downstream lithium and battery applied sciences and to ship an moral and sustainable provide of power metals for batteries by way of progressive minerals processing and battery recycling strategies, thus creating an energy-metals loop.

This transaction implies that the corporate reduces its monetary dedication and exploration danger but retains important lithium commodity publicity by the use of each Galan shares and 20 per cent venture fairness.

Historic exploration undertaken inside the Greenbushes South venture indicated the presence of pegmatites, a rock kind which will host spodumene, and so offers quick exploration targets, in line with the brand new JV.

A lot of the sooner work centered on tin and tantalum as Greenbushes ore was at completely different occasions mined for these metals earlier than spodumene took over the mantle.

Galan Lithium Managing Director, Juan Pablo Vargas de la Vega stated: “We’re delighted to amass a big majority stake in a extremely potential lithium venture in a world-renowned lithium district and improve our present lithium exploration floor at Greenbushes in WA. We’ve secured an impressive exploration alternative in WA so as to add to our present portfolio of belongings in Argentina which have a possible manufacturing profile.”

The Greenbushes mining and processing operation, which is positioned roughly 90 kilometres south-east of Bunbury within the South West, has been run since Could 2014 by Talison Lithium, a JV between Sichuan, China-based group Tianqi Lithium Company and US-headquartered Albemarle Company.

It produces a focus of the lithium mineral spodumene to feed mineral conversion vegetation in each China and WA and customers of spodumene concentrates in Europe, North America and China.

Amid an enhancing lithium worth, the $5.2 billion market-capped Australian miner IGO final month signed a deal to purchase one-quarter of the Greenbushes asset in addition to a 49 per cent curiosity of the Kwinana lithium hydroxide plant from Tianqi Lithium for a complete consideration of US$1.four billion.

Whereas rationalising its suite of lithium initiatives and alliances, Lithium Australia continues with analysis and growth on its proprietary extraction processes for the conversion of lithium silicates together with mine waste, and of unused fines from spodumene processing, into lithium chemical substances.

From these chemical substances, Lithium Australia hopes to supply superior elements for the battery trade and for stationary power storage techniques. The corporate says the recycling of spent lithium-ion batteries was intrinsic to its plan of making a round battery financial system.

Is your ASX-listed firm doing one thing fascinating? Contact: matt.birney@wanews.com.au



Source link